August 27, 2015
                                           
China Lysine Weekly: Subdued demand weakens market (week ended Aug 25, 2015)
 
An eFeedLink Exclusive
 

Price summary
 
Prices moved lower.
 
Price quotes of 98.5-percent lysine were weaker in the range of RMB8-8.20/kg. Average transacted price fell by RMB0.10/kg to RMB8.07/kg.
                                                   
Price quotes of 65-percent lysine and 70-percent lysine were at RMB5/kg and RMB5.20-5.40/kg respectively.
 
For imported 98.5-percent lysine, transacted prices slid to RMB9.90-10.35/kg.
 

Weekly transacted prices of imported lysine in China (RMB/kg)

Provinces

City/Municipality

Price as of Aug 25
(RMB/kg)

Price as of Aug 18
(RMB/kg)

Price change
(RMB/kg)

Guangdong

Guangzhou

8.00

8.00

0.00

Sichuan

Chengdu

8.20

8.40

-0.20

Shandong

Jinan

8.00

8.20

-0.20

Henan

Zhengzhou 

8.00

8.00

0.00

Liaoning

Shenyang

8.00

8.20

-0.20

-

Beijing

8.20

8.20

0.00

-

Average

8.07

8.17

-0.10

 

 

 

 

 

Weekly prices of imported lysine in China (RMB/kg)

Provinces

City/Municipality

Price as of Aug 25
(RMB/kg)

Price as of Aug 18
(RMB/kg)

Price change
(RMB/kg)

Guangdong

Guangzhou

10.10

10.10

0.00

Sichuan

Chengdu

10.10

10.30

-0.20

Shandong

Jinan

10.20

10.40

-0.20

Henan

Zhengzhou 

10.40

10.40

0.00

Liaoning

Shenyang

9.90

10.10

-0.20

-

Beijing

10.35

10.35

0.00

-

Average

10.18

10.28

-0.10

Prices are for reference only.
RMB1=US$0.1553 (Aug 27)

 
 
Market analysis
 
Demand for lysine remained slack as hog population continued to dwindle amid insufficient piglet production. With production costs staying low due to weak corn prices, lysine producers cut prices in efforts to entice buyers.
 
In Europe, price quotes for future deliveries were higher in the range of EUR1.58-1.64/kg.
 
 
Market forecast

Lysine prices are expected to stay soft although the feed intake of animals will increase as farmers prepare the animals for September's pre-festive market. With soymeal market weak amid record low CBOT soy prices, the inclusion rates of lysine will stay low, hence impeding the sales of the product in conjunction with a diminishing hog population.   
 
Although the devaluation of renminbi should help to stimulate export demand and lend support to lysine prices, the effect will not be prominent in the near term.
 
 
 


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